Value360: 2022 year in review

Transaction Advisory Services:

• 850+ transactions valued at more than $25 billion

Restructuring and Dispute Resolution:

• Generated ROI (return on fees) for clients ranging from 2x-44x

Project Finance and Consulting:

• Serve majority of syndicators in $22 billion affordable housing financing market

Valuation:

• Testified at 39 hearings, in 9 states, representing 18 developers related to our Solar Farm Property Value Impact Studies

North Carolina Mill Rehabilitation Tax Credit (Article 3H) reinstated

• Background: After the state legislature in North Carolina re-instated a tax credit statute that had expired, we determined that our clients could benefit significantly from the tax credits.
• Our role: Technical subject matter expert/ drafted submission for credits on behalf of the client
• Results: After submitting a request for ruling, client received favorable determination from the Department of Revenue and is expecting an additional $3 million of tax equity.

Lisner Louise Dickson Hurt Home operating cost financial model

• Background:  A not-for-profit operator of an affordable housing facility for seniors needed to reduce its operating costs and sought analysis under different scenarios.   
• Our role:  Created a budget/proforma model to conduct the comparison 
• Results: Client leveraged our analysis to support a submission to a third-party entity for grant funding. Client was rewarded with a $3.5 million grant from the third party to fund much-needed renovations and capitalize a reserve for services.

Retail chain

• Background: A specialty retailer and consumer lender needed guidance on an acquisition which required raising a debt facility to finance the buyout. 
• Our role: Lead acquisition advisor
• Results: Finalized the structure of the sourced capital and connected the buyer with a provider who funded the capital needed to acquire and operate the post-close store. Helped the buyer realize a 30% increase in financial performance through revenue improvements and lean operation initiatives, including beneficial lease modifications.

Beverage distributor 

• Background: A third-generation, family-owned, beverage distributor with $300 million in revenue had to manage financial distress after leveraging the business to acquire a competitor.
• Our role: Performance improvement consultant
• Results: Increased EBITDA by 75% and generated a 200% increase in equity value. Improved Q1 cash flow by $650,000 while maintaining a 10% improvement in weekly cash flow through upgraded collections. Reduced inventory investment by 10% and dilution by $700,000 on rising sales. Realized more than $1.3 million in warehouse and delivery cost savings despite increasing volume.

Private equity majority stake acquisition of privately owned media and entertainment company 

• Background: A capital provider concentrating on special situations required confirmatory financial due diligence as part of its acquisition process. Areas of focus included:
  • Quality and sustainability of earnings (QofE)
  • Purchase agreement assistance
  • Identification and confirmation of operating trends
  • Review of financial and operating environment and controls
  • Identification of potential key-risks and areas of improvement
• Our role: Financial and tax due diligence advisor
• Results: We identified areas of risk and determined/quantified limited exposure. We uncovered areas where the seller/acquired entity could benefit from post-acquisition. The transaction successfully closed.

Acquisition of a durable medical equipment (DME) provider by a strategic client – Buy-side due-diligence

• Background: Our client, an in-home medical equipment/supplies provider, required confirmatory financial due diligence that included a billing, coding, and compliance review of the target in connection with an acquisition. 
• Our role: Financial due diligence and billing, coding and compliance diligence 
• Results: We identified an overstatement of earnings in the most recent period, resulting in a significant reduction in purchase price. We helped the client identify $1.4 million of vendor synergies that could be achieved on day one post-close.